Financial Data and Key Metrics Changes - Organic revenue growth improved sequentially by 200 basis points and was flat year over year [6] - Adjusted EBITDA margin contracted to 16.6% [7] - Adjusted EPS for the quarter was $0.24, a decline of $0.01 year over year [18] - Free cash flow was $125 million with adjusted conversion at 100% [7][18] - Adjusted net leverage ended the quarter at 3.2 times adjusted EBITDA, unchanged from Q1 [18] Business Line Data and Key Metrics Changes - Laboratory Solutions revenue was $1,122 million, declining 1% year over year but growing 2% sequentially [19] - Bioscience production revenue was $561 million, up 2% organically year over year and up 7% sequentially [21] - Bioprocessing performance was flat year over year, impacted by customer headwinds and extended maintenance [12][21] Market Data and Key Metrics Changes - European business was nearly flat, outperforming The Americas and Asia, which faced greater policy headwinds [20] - Demand for core monoclonal antibody platform remains strong despite challenges faced by large customers [13][44] Company Strategy and Development Direction - The company remains focused on executing strategic initiatives to drive growth, improve operating efficiency, and deliver long-term value [6][30] - Significant contract extensions with top global pharma accounts are expected to result in over $100 million in share gains [11] - The company is committed to protecting and growing market share while preserving profitability [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in the operating environment but expressed confidence in the company's ability to expand margins over time [12][30] - The outlook for full-year organic revenue growth has been reduced to negative 2% to flat, reflecting current trends [23] - Management expects continued strong demand for the core monoclonal antibody platform despite headwinds [44] Other Important Information - A leadership transition was announced, with Emanuel Ligner appointed as the next CEO effective August 18 [5] - The company is on track with its cost transformation program, expecting $400 million in run rate savings by 2027 [7] Q&A Session Summary Question: What is the assumption for the segments in the third quarter guidance? - Management indicated that performance is expected to be consistent across segments, with some seasonality affecting results [34] Question: How much of the EBITDA margin decline was due to mix versus pricing? - The decline was primarily driven by pricing actions in the lab business, with some impact from underperformance in bioprocessing [36] Question: What are the expectations for bioprocessing growth long-term? - Management remains confident that bioprocessing can grow at mid to high single digits, despite recent challenges [46] Question: What actions are being taken to improve bioprocessing performance? - The team is focusing on optimizing supply chain, increasing field intensity, and expanding product offerings [14][93] Question: How are the recent contract extensions linked to share gains? - The extensions are expected to result in increased commitments from existing customers, contributing to share gains [105] Question: What is the outlook for margins in the lab business? - Management expects margins to improve as share gains materialize and operational efficiencies are realized [88]

Group 1 - The company has successfully achieved its deleveraging goal of 2.5x in the first quarter and plans to initiate a buyback in the second quarter [5] - The CFO highlighted a significant cost transformation effort aimed at strengthening the balance sheet and investing in both 5G and fiber infrastructure [4] - The company expects to continue adding fiber infrastructure over the next five years, indicating a commitment to ongoing investment in this area [5] Group 2 - The CFO has been with the company since 2021 and has played a key role in the strategic direction of the company's financial management [4] - The company is focused on balancing capital allocation priorities following the achievement of its leverage target [5] - The emphasis on fiber as a critical component of the company's infrastructure strategy was reiterated, showcasing its importance in future growth [5]

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $1.69 billion, reflecting a low single-digit organic growth, marking a significant milestone in the recovery process [7][18] - Adjusted EBITDA margin expanded to 18.2%, the highest level in over a year, driven by an improved mix and benefits from a multi-year cost transformation initiative [7][19] - Adjusted earnings per share increased to $0.27 in Q4, up 4% sequentially and 8% year over year [7][20] - For the full year, reported revenue was $6.78 billion, representing a 2% organic revenue decline compared to the previous year [22][23] Business Line Data and Key Metrics Changes - The Laboratory Solutions segment generated $1.13 billion in revenue for Q4, a 1% decline on an organic basis, while full-year revenue was $4.61 billion, down 2% [24][26] - The Bioscience Production segment achieved Q4 revenue of $561 million, with organic growth of 4%, driven by high single-digit growth in bioprocessing [27][29] - Adjusted operating income for Laboratory Solutions was $147 million in Q4, with a margin of 13.1%, while for Bioscience Production, it was $149 million with a margin of 26.6% [26][27] Market Data and Key Metrics Changes - The academic end market remains strong, with large pharma customers increasing investments in preclinical activities, supporting growth in 2025 [9][10] - The company anticipates low single-digit organic growth in lab solutions and mid-single-digit growth in bioscience production for 2025 [29][30] Company Strategy and Development Direction - The company is focused on deleveraging, having paid down $1.3 billion of debt in 2024, reducing net leverage to 3.2 times [16][24] - A balanced, value-driven capital allocation approach is planned once the leverage target is achieved, with a focus on innovation-driven growth and margin expansion [16][30] - The introduction of new products and services, including digital tools and generative AI solutions, is part of the long-term growth strategy [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum entering 2025, with expectations for organic growth, margin expansion, and double-digit EPS growth [39][40] - The company is monitoring the macro environment closely, particularly regarding potential policy changes from the new administration, but remains optimistic about funding for good science [66][67] Other Important Information - The company generated $768 million in free cash flow for the year, exceeding original guidance [23][21] - The clinical services divestiture is expected to have a 2% headwind on revenue, with additional impacts from foreign exchange [29][32] Q&A Session Summary Question: Order trends in bioprocessing and guidance assumptions - Management noted strong order intake in bioprocessing with no significant pull forward of orders, indicating a solid market foundation [42][45] Question: Clarification on margin guidance - Management explained the wide margin range reflects the fixed cost structure and potential for better conversion with higher sales [48][53] Question: Performance of the lab business in Q4 - Management acknowledged a muted seasonal ramp and macro uncertainties affecting lab performance, but highlighted resilience in the business model [58][61] Question: Policy risks and customer behavior changes - Management indicated limited direct exposure to NIH funding and remains confident in the overall business environment despite potential policy changes [66][67] Question: Impact of new distribution agreements - Management anticipates low single-digit growth for the lab business in 2025, with new agreements expected to contribute positively to growth [101][102]